Banks to cap 3rd party ATM cash withdrawals from mid-Oct

Last Updated: Friday, August 28, 2009 - 16:03

Mumbai: Banks have decided to put a Rs
10,000 cap per third party ATM cash withdrawal from October
15, besides limiting such transactions to five in a month.

Indian Banks` Association, which is the industry lobby
of Indian banks, has sent a circular to its 150 member banks
directing them to implement the decisions from mid-October, a
source close to the development said.

"IBA has sent a circular to all banks asking them to
implement these decisions on third party ATM transactions
from October 15," the source said.

Early this month, the Reserve Bank had put a Rs 10,000
cap per withdrawal from ATMs not owned by the bank in which
the customer has an account, besides limiting such
transactions to five in a month.

The apex bank had sent a communication in this regard to
Indian Banks` Association (IBA).

IBA had submitted its recommendations to the central
bank last month citing the financial burden faced by banks on
account of huge number of third party usage and small-ticket
withdrawals.

Since April 1, RBI had declared third party ATM usage,
including cash withdrawals and account enquiries, free for all
customers and said that banks can charge Rs 18-20 per month
from other banks in case of third party ATM transaction.

Bureau Report



First Published: Friday, August 28, 2009 - 16:03

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